New ‘Fallout’ Game Reportedly Coming From Obsidian, ‘Avowed 2’ Cancelled

July 9, 2026 - 01:36

A new report suggests that Obsidian Entertainment has cancelled the planned sequel to its upcoming fantasy RPG, Avowed, in favor of developing a brand new entry in the Fallout series. According to sources familiar with the studio's plans, the project will be led by Josh Sawyer, the acclaimed director of Fallout: New Vegas.

The news comes as a surprise to many fans who were expecting Obsidian to double down on the first-person fantasy world of Avowed, which is still set for release later this year. Instead, the studio appears to be pivoting back to the post-apocalyptic wasteland that brought it some of its greatest critical success. The rumored Fallout title would mark the first time Obsidian has worked on the franchise since New Vegas launched in 2010.

Details on the new game remain scarce, but the involvement of Sawyer suggests a return to the deep role-playing systems, branching narratives, and player choice that defined New Vegas. It is unclear whether this project is a full mainline title or a smaller spin-off, but the cancellation of Avowed 2 indicates a major strategic shift for the studio. Microsoft, which owns Obsidian, has not commented on the report. For now, fans will have to wait for an official announcement to see if the wasteland truly calls again.